Ad hoc announcement pursuant to Art. 53 LR – Press release

LEM announces results for H1 2022/23: record sales and EBIT
Geneva, Switzerland, 8 November 2022 – LEM (SIX: LEHN), a leading global company in electricalmeasurement for renewable energy, automation, power network and e-mobility applications,announces half year results for 2022/23 (April-September) compared to 2021/22:•Bookings decreased by 10.0% to CHF 270.1 million (CHF 300.2 million)•Sales increased by 7.8% to CHF 198.1 million (CHF 183.7 million); at constant exchange rates,sales increased by 9.5%•

The company benefits from a diverse global distribution of sales, led by China and EMEA:– China CHF 82.1 m (41.4% of total)– Rest-of-Asia CHF 34.0 m (17.1% of total)– EMEA CHF 58.4 m (29.5% of total)– Americas CHF 23.6 m (11.9% of total)•R&D investments of CHF 16.7 million (CHF 15.2 million), or 8.4% of sales•EBIT increased by 8.6% to CHF 45.8 million (CHF 42.1 million); the EBIT margin increased to23.1% (22.9%)•Net profit for the period was flat at CHF 35.2 million (CHF 35.2 million)•Operating cash flow increased to CHF 36.8 million (CHF 11.9 million)

Frank Rehfeld, Chief Executive Officer, said: “We are delighted to report our best ever quarter, withQ2 sales of CHF 107.3 million, breaking the CHF 100 million level for the first time. This result wasdriven mainly by our Automotive and Energy Distribution businesses. China recovered well from thelockdown effects in Q1, but we still face major challenges in fulfilling orders for customers. TheAmericas’ strong performance was led by the accelerating adoption of electric vehicles, charging
infrastructure, and renewable energy.”
Andrea Borla, Chief Financial Officer, remarked: “Top-line growth and an improved gross margin
led to a record EBIT result for the half year. Our order book has dropped to more normal levels after
the extreme disruptions of the past two years. However, we still face significant supply chain challenges
and therefore expect full year sales between CHF 390 – 400 million.”

LEM Holding SAPage 1/7

Performance by businesses
in CHF millions
Businesses
Automation
Automotive
Renewable Energy
Energy Distribution& High Precision
Track
Total

Scopedrives, robots, toolingmachines, elevators,
HVAC
battery (EV & CE), motor
control, onboard
charging
solar, windcharging stations, smart
grid, energy storage,
high precision
trains, metro, trackside

2022/23H1

2021/22
H1

Change

67.4

65.4

+3.1%

50.1

40.0

+25.2%

33.4
27.9

33.7
23.1

-0.9%
+20.7%

19.2
198.1

21.4
183.7

-10.2%+7.8%

Automation
Despite continued component shortages, sales grew slightly. This business is mainly driven by themanufacturing investment cycle and the strong demand for small and medium power applications,including tooling machines, and HVAC (Heating, Ventilation, and Air Conditioning). We continue toreceive very positive feedback about our new product family of ICSs for small drives and robotics.
Automotive
With the end of lockdown in Shanghai, Q2 stands out with record sales. Bookings decreased inabsolute terms, but the book-to-bill ratio is still above 1.0, as the fundamental demand for EVs remains.
New sector players in China continue to outperform the more established OEMs.
Renewable Energy
Sales decreased slightly, as the business was over proportionally impacted by supply chain shortages.
The future prospects for Renewable Energy remain strong, as global concerns about dependency on
fossil fuels continue to accelerate favorable government policies and commercial investment.
Energy Distribution & High Precision
The infrastructure investment for e-mobility is driving customer interest in our DC Meter products, which
was the main reason for the strong increase in sales. Our most recent product line, the IN family, which
offers high precision solutions for test benches in the EV market, continues to be well received.
Track
Our Traction business, with its project-based long investment horizons, has also been impacted by thecessation of our operations in Russia. However, the order book remains strong.

LEM Holding SA

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Performance by regionsin CHF millions
Regions
China
Rest-of-Asia
EMEA
Americas2022/23H1

2021/22
H1

Change

82.1
34.0

70.7
33.2

+16.0%
+2.2%

58.4

61.5

-5.0%

23.6

18.2

+30.0%

198.1

183.7

+7.8%

Scope
Japan, South-Korea,
India, South-East AsiaEurope, Middle East &Africa
NAFTA & Latin
America

Total

China
The overall sales performance was better than expected due to a quick recovery from the lockdown
effects in Q1. The EV market both domestically and for export developed very well. Our Renewable
Energy business saw an increasing demand for sensors for solar and electric storage devices thatLEM was not able to fully satisfy. The Automation business remained stable, serving mostly local
demand. Our traditional Track business remains at a low level with reduced domestic travelling. Theorder book is still at very high levels and allocating delivered products across different customers
remains a big challenge. The risk of further wide-ranging lockdowns remains.
Rest-of-Asia
Sales increased slightly and demand remains very strong across the region. Japan performed well inboth the Automotive and Automation businesses, although reported sales were impacted by the weak
Yen. South Korea recovered and was up in all five businesses, while India was down due to long leadtimes in the Traction business.
EMEA
Sales were adversely impacted by foreign exchange rates and our decision to cease all operations inRussia. The first half year showed solid bookings and the DC Meter product continues to besuccessfully rolled out from Germany across Western Europe. The transfer of production of ourmetering applications to our new headquarters in Geneva has been completed successfully. With
Europe’s demand for energy security, the fundamental megatrends driving our businesses are gaining
even more momentum.
Americas
The strong sales performance was mainly driven by demand for our e-mobility products for DC
metering, battery, and motor control. Demand for 12V battery products is clearly bottoming out andmay come to an end in the next two years, while the roll out of our DC Meter 400 and 600 is picking
up at a high speed. The US government’s commitment to sustainable energies is visibly impacting thegeneral buying behavior and ultimately our order books, including smart grid and Renewable Energy
applications. Still, we could have sold more, and remain hampered by the global shortage insemiconductors.
Profitability remains robust
Gross profit was up by 9.6% at CHF 93.8 million (CHF 85.6 million), while the gross margin improved
again to 47.4%. This is 80 basis points better than in the prior year, due mainly to sales price increases
and the benefits from economies of scale.
SG&A costs were up by 10.7% to CHF 31.4 million (CHF 28.4 million) and accounted for 15.8% ofsales (15.4%). This increase reflects external consulting support for several key initiatives, investments
in technology infrastructure and recruitment of additional talent. We continue with our long-term

LEM Holding SA

Page 3/7

investment in future applications, with R&D up in absolute terms by 9.8% to CHF 16.7 million (CHF15.2 million), or 8.4% of sales (8.3%).
EBIT for this first half year increased by 8.6% to CHF 45.8 million from CHF 42.1 million, mainly due
to improved sales and better gross margin. Our reported EBIT margin was up at 23.1% compared with22.9%.
The negative impact of foreign exchange translations on the first half year was CHF 2.5 million, up
from CHF 0.3 million last year, mainly due to the EUR depreciation. The Group tax expenses of CHF
7.5 million represent a tax rate of 17.6%.
Net profit for the first half year remained flat at CHF 35.2 million, mainly due to the higher foreignexchange impact. This half year’s net profit margin thereby decreased to 17.8% compared with 19.2%.
Outlook
Our businesses have shown to be successful as they continue to benefit from the fundamental driversof electrification, renewable energy and mobility. However, our growth is restrained by shortages,
mostly for electronic components. We are also aware of the risk of upcoming recessions in key
markets. For the full financial year 2022/23, the company currently expects sales in the range of CHF
390 – 400 million (CHF 373.4 million for 2021/22), with an EBIT margin above 20%. However, thisexcludes the potential impact of significant lockdowns in China.

Conference call and webcast
Frank Rehfeld, CEO, and Andrea Borla, CFO, will provide a presentation of the half year 2022/23
results today at 10:45 CET at a media and investor community audio webcast and conference call.
Listen to live audio webcast
https://event.choruscall.com/mediaframe/webcast.html?webcastid=PDbX4yw1
The press release, Financial Half Year Report, webcast slides, and the link to the audio webcast areavailable in the Investor Relations section of the LEM website (www.lem.com/en/investors), where therecorded webcast will later also be archived.
Dial-In Numbers
Switzerland & Europe:
UK:
USA:
Other countries:+41 (0)58 310 50 00+44 (0) 207 107 06 13+1 (1) 631 570 56 13
https://services3.choruscall.ch/NUMBERS/Attended_Dial_In_Numbers.pdf

Financial calendar
The financial year runs from 1 April to 31 March
6 February 2023
9 months results 2022/23
25 May 2023
Full year results 2022/23
29 June 2023
Annual General Meeting of Shareholders for the financial year 2022/23
4 July 2023
Dividend ex-date
6 July 2023
Dividend payment date

LEM Holding SA

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LEM – Life Energy Motion
A leading company in electrical measurement, LEM engineers the best solutions for energy andmobility, ensuring that our customers’ systems are optimized, reliable and safe.
Our 1,600 people in over 15 countries transform technology potential into powerful answers. We
develop and recruit the best global talent, working at the forefront of megatrends such as renewableenergy, mobility, automation and digitization.
With innovative electrical solutions, we are helping our customers and society accelerate the transition
to a sustainable future.
Listed on the SIX Swiss Exchange since 1986, the company’s ticker symbol is LEHN.
www.lem.com
Contact: Investment community
Andrea Borla, Chief Finance Officer
Phone: +41 22 706 1250
Email: investor@lem.com

LEM Holding SA

Contact: Media
Cabinet Privé de Conseils s.a. (CPC)
Nick Miles: miles@cpc-pr.com, mobile: +41 79 678 76 26
Michael Füglister: fuglister@cpc-pr.com, mobile: +41 78 839 07 62

Page 5/7

Appendix
Consolidated income statement
April to September
2022/23

In CHF thousands

2021/22

Change
+7.8%

Sales

198'066

183'665

Cost of goods sold(104'240)(98'066)

Gross margin

93'82685'600Gross margin (in %)

47.4%

46.6%

Sales expense(13'675)(14'109)

Administration expense(17'709)(14'251)

Research & development expense(16'711)(15'216)

2290

EBIT

45'75242'114

EBIT margin (in %)

23.1%

22.9%

Financial expense

(717)

(226)

Other income

Financial income

165

177

Foreign exchange effect(2'464)(329)

Profit before taxes

42'73641'736

Income taxes(7'526)(6'551)

Net profit of the period

35'21035'185

Net profit margin (in %)

17.8%

19.2%

LEM Holding SA

+9.6%

+8.6%

+2.4%

+0.1%

Page 6/7

Key Figures
2022/23

LEM Group

Orders received
Total LEM

Q1

Q2

158.1

112.0

Book-to-bill ratio

Q1

Q2

Total LEM

1.74

1.04

Q3

Q3

Q4

Q4

FY

FY

2021/22

ChangeQ2 - Q2 6M - 6M

Q1

Q2

Q3

Q4

FY

146.4

153.7

136.7

139.5

576.4

-27.2%-10.0%Q1Q2

Q3

Q4FYQ2 - Q2 6M - 6M

1.57

1.70

1.49

1.42

1.54-38.7%

Q2 - Q2 6M - 6M

-16.6%

Sales

Q1

Q2

Q1

Q2

Q3

Q4

FYAutomation

30.5

36.9

33.3

32.1

31.2

33.7

130.3

+15.0%

Automotive

21.8

28.4

20.1

20.0

22.5

23.3

85.8

+42.1% +25.2%

Renewable Energy

15.4

18.0

17.0

16.7

15.7

16.5

66.0

+7.6%

Energy Distribution & High Precision

13.8

14.1

12.4

10.7

12.2

13.2

48.6

+31.8% +20.7%

Q3

Q4

FY

+3.1%
-0.9%

Track

9.3

10.0

10.5

10.9

10.2

11.342.8-8.7%-10.2%

Total LEM

90.7

107.3

93.3

90.4

91.8

97.9

373.4

+18.8%

+7.8%

EBIT

Q1

Q2Total LEM

19.5

26.3

Net profit of the period

Q1

Q2Total LEM

14.7

20.5

LEM Holding SA

Q3

Q3

Q4

Q4

FYFY

Q1

Q2

Q3

Q4

FY

Q2 - Q2 6M - 6M

21.2

20.9

22.0

24.2

88.4

+25.7%

+8.6%

Q1

Q2

Q3

Q4

FY

Q2 - Q2 6M - 6M

17.3

17.9

18.5

18.6

72.4

+14.7%+0.1%

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